Flinders Island won't be left in the lurch by shipping dispute, vows mayor Carol Cox

The Flinders Council Mayor Carol Cox says she is confident that Flinders Island will not be 'left in the lurch' after the future of the island's shipping service was thrown into doubt.

Furneaux Freight, the shipping company which services the island, told TasPorts it would cease stevedore activities at Lady Barron port, including unloading and distributing freight, at the end of the month.

The Infrastructure Minister Rene Hidding told parliament the company had given notice that it would discontinue its Flinders Island service altogether.

He said at issue was the company's stevedoring operations which had been audited recently.

"The Government is advised that the dispute is in relation to non-conformances identified through audits into safety and dangerous goods handling that were ordered by TasPorts at Lady Barron Port," he said.

He said that under the new national workplace health and safety laws, TasPorts, which owns and operates Lady Barron port, would be held responsible for any serious breaches of the law at the port.

"Furneaux Freight has notified TasPorts that it is unwilling the rectify the issues that have been identified and that it will terminate its Stevedore Licence Agreement for the management of the Port of Lady Barron. Further, they have also advised they will cease their shipping service."

Shipping service a lifeline for Flinders Island

Flinders Island is dependent on the service, as it transports most of Flinders Island's fuel and food, and provides essential access to wider markets for the island's farmers.

Mr Hedding said the government would ensure that a contingency service would be in place before a sustainable alternative service was established.

The Flinders Council Mayor Carol Cox emerged from meetings in Hobart this morning with Mr Hidding, representatives of Tas Ports and bureaucrats feeling positive a solution would be found.

"I'm really confident that we've got the support of the government to find us a good solution going forward, that we won't be left in the lurch when we've got farmers facing very dry conditions at the moment," she said.

Shannon Bayles, the owner and operator of Furneaux Freight, issued a statement to say his company was committed to the shipping service but not the stevedoring operations.

"Despite reports to the contrary, Furneaux Freight remains committed to continuing a reliable, safe and efficient shipping service to the communities of both Flinders and Cape Barren Island," he said.

"Furneaux Freight have given Tasports notice that it no longer will conduct stevedore activities at the Port of Lady Barron which is owned by Tasports but it remains committed to continuing a reliable, safe and efficient shipping service to the communities on both Flinders and Cape Barren Islands."

Former deputy mayor and cattle farmer, Michael Grimshaw, said the dispute could not have come at a worse time for farmers.

"We're coming up to our busy period in transporting livestock off the island and we supply 9 per cent of Tasmania's cattle," he said.

"If we lost this service now it could be devastating to farmers and we don't know that there's another service that could even meet the standard that Furneaux Freight provides in relation to shipping livestock."